Province

Lampung

Overview Economy

Lampung, province of the endangered Sumatran elephants

Lampung, a province situated on the southern tip of Sumatra is a land of diversity and contrasts. Situated along the Sunda Strait, which connects the Java Sea to the Indian Ocean, the province’s geographical position at the crossroads of maritime routes has historically positioned the province as a key trading hub.

This maritime corridor not only facilitates maritime trade but also serves as a critical passage for vessels traveling between the Pacific and Indian Oceans, thereby solidifying Lampung's significance in the regional and global shipping network.

Ranking as the 8th most populous province in Indonesia in 2023 with a population of 9.05 million people, Lampung is home to a diverse range of ethnic groups, with the Lampung, Malay, and Javanese people constituting the largest populations. Each group preserves customs and traditions that have been handed down through the years, adding to the cultural tapestry of the region. Moreover, Lampung practices a variety of religions, including Buddhism, Hinduism, and Christianity.

Lampung is also home to a nature-rich landscape that includes verdant plains, beaches, and thick tropical woods. Landmarks such as Krakatau, Kiluan Bay, and Tanjung Setia contribute to Lampung’s landscape, providing a haven for eco-tourism that offers opportunities such as whale watching, snorkeling, and immersive experiences in nature.

Additionally, the province is committed to biodiversity conservation, as exhibited by the presence of Way Kambas National Park. Recognized as a UNESCO World Heritage site, the park is home to the critically endangered Sumatran elephants.

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Economic opportunities

According to Statistics Indonesia, as of 2023, Lampung’s Gross Regional Domestic Product (GRDP) reached Rp 448 billion, with a GRDP per capita of Rp 48 million.

As a significant producer of pepper, rubber, and coffee, Lampung's economy is mostly dependent on agriculture. Its agricultural products have also performed well at the national level. In 2022 alone, the province’s agricultural products ranked in the top ten nationally, with rice coming in seventh place, corn in third, followed by sugarcane and cassava in second and first place, respectively.

Lampung is also ideally situated, making the province a major entry point for trade and business. The Tanjung Priok port facilitates seamless transportation of goods both within the province and beyond.

As of 2022, the province’s exports were valued at US$5.61 billion, with the main commodities including coffee, tea, animal oil, coal, and other chemical products. These exports were primarily destined for countries such as the US, China, India, South Korea, the Philippines, Japan, Italy, the Netherlands, and various African nations.

Lampung’s economic growth, coupled with its infrastructure development, has facilitated the government’s efforts to foster sustainable tourism and bolster the local economy through improved transportation infrastructure. This development encompasses infrastructure projects like the Trans-Sumatra Highway, connecting the province to the rest of Sumatra.

Moreover, Lampung possesses significant renewable energy resources, particularly geothermal energy, which can be found in 13 locations spread across the six regencies of West Lampung, Tanggamus, South Lampung, Pesawaran, Way Kanan, and Bandar Lampung.

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Latest News

August 29, 2025

Transactions at the East Java Trade and Investment Mission to Lampung reached nearly Rp 1.06 trillion. East Java Governor Khofifah Indar Parawansa stated that the achievement represents a significant increase compared to the 2023 event, which saw 35 transactions worth a combined Rp 285.52 billion.

"This achievement is the result of synergy and trust between regions in supporting domestic products. This is clear evidence that East Java remains committed to driving national economic growth and our optimism about realizing the strength of the domestic market," she stated officially on Aug. 8, 2025.

The Trade and Investment Mission was  held at Swiss-Belhotel Lampung on Aug. 8, 2025. It was attended by East Java Governor Khofifah, Lampung Governor Rahmat Mirzani Djausal, Acting Bank Jatim President Director Arif Suhirman, and Bank Lampung President Director Mahdi Yusuf.

Khofifah also expected that the signing of the agreement between regional development banks (BPDs) PT Bank Pembangunan Daerah Jawa Timur (Bank Jatim) and PT Bank Lampung will further the connection between the two provinces.

"This [collaboration] will certainly strengthen the performance of BPDs in the two provinces, support economic and financial sector growth, as well as serve as a gateway for cooperation between the provinces of East Java and Lampung. The collaboration is in line with regulations set by the Financial Services Authority (OJK)," she elaborated.

Acting Bank Jatim President Director Arif emphasized that the bank continues to support the East Java Provincial Government's programs, including participation in the Trade and Investment Mission, which had "Enhancing Connectivity Networks between East Java and Lampung Provinces" as its theme.

He explained that Bank Jatim remains committed to supporting East Java's micro, small, and medium enterprises (MSMEs) in increasing their competitiveness so they can penetrate national and international markets.

"We are having MSMEs fostered by Bank Jatim participate in this Trade Mission as part of efforts to expand their market share. We are confident that their products will attract visitors and have the potential to create new business opportunities for the entrepreneurs [involved]," Arif added.

The MSMEs in question are Gajah Mada Batik MSME, Majapahit Chocolate MSME, and CYS Fried Onion MSME. He stated that MSMEs ccould gain a strategic platform to introduce their products to potential markets in Lampung through the event. This allows Bank Jatim to provide various banking services to MSME customers as well as actively provide mentoring and support in developing their businesses.

"The superior products of the MSMEs fostered by Bank Jatim are expected to provide benefits according to the needs of Lampung Province's people," he explained.

The signing of the Conditional Share Subscription and Acquisition Agreement between Bank Jatim and Bank Lampung also took place. The signing was conducted by Arif with Bank Lampung President Director Mahdi, and witnessed by the governors of their respective provinces.

"The purpose of this agreement is to regulate the procedures for implementing capital participation and the formation of a bank business group (holding company) between the parties. Bank Lampung agrees to increase its paid-in capital, which will then be followed by capital participation from the BPD," Arif explained.

He divulged that the holding company was created to strengthen the structure, resilience, and competitiveness of both BPDs in the banking industry. The goal is for banks in a holding company with Bank Jatim could become more competitive regionally and advance the development and economy of their respective regions and Indonesia as a whole.

Mahdi stated that he is confident the BPD holding company will bring many positive changes to Bank Lampung, making it stronger and able to maximize the potential of existing synergies.

"We are confident that synergizing through a holding company with Bank Jatim can have a positive impact on Bank Lampung's business performance. One of the things we will prepare is human resources so that all work programs could be realized properly and optimally," he emphasized.

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